Help! How do I not lose motivation and ruminate whilst I wait out my debt plan

RAS

Creditors are a lot less aggressive than they were when I first came here. Some still warn about dire consequences that could legally happen if you ignored all attempts at debt collection for many years, but can be stymied merely by engaging.

On a general point, I'd suggest exploring the issues facing anyone on a long haul change in behaviour, whether it's eating, substance use, gambling, thrill seeking etc. 

One I note is how often people make a minor slip and catastrophise. One swallow doesn't make a summer and a blip doesn't mean you can never ever achieve your goal, or should beat yourself up.

It means being kind to yourself, acknowledging the mistake, and picking yourself up the next morning and choosing to get back on track. And perhaps calling a friend or sitting with what happened for a little while to see if you can spot the trigger.

The other thing might seem a bit trite, but the most successful people often have far more experience of failure that those who don't "succeed."

Because when they don't achieve their target, they get up, and try again. And again, and again. Sometimes again leads to a small improvement and sometimes they go backwards. And they go again. It's particularly obvious in some sports, because they are visible but it applies to others working to change laws and practice etc. And to folk who just need motivation to complete a task.

tigergambit

Willrdouglas1809 said:

Hi,

A quick overview into my life for the past few years may help with some guidance, so I'll start there. I'm 28 and had been managing debt via balance transfers, but keeping the original cards as well as other usually BNPL and store credit type debts from essentially I was 18 with it peaking around COVID time. During that time I did look at an IVA, was told it wasn't recommend, so kept struggling until 2023 when it got too much and entered into a debt management plan with Payplan

At the time I had around 24k of debt, with 22 of that going into the debt plan. Then after about 18 months I realised I couldn't manage that finally account and just went direct with them to do a debt plan.

In addition to this, a hobby I thought I could turn into a business went very poorly and now owed 4k in business debt. This is fully responsible by me and entered a management plan with them at £200/month.

As it currently stands I owe the below and I'll put the expected finish date.

Payplan - £397/month - Sept 2027
Paypal - £40/month - July 2029
Business Debt - £200/month - March 2027 (I do resell items for help cover this payment, but usually have to add £30-80 from my regular wage to cover the payment)

So about £12k left to pay across the board

I do have some new credit which I got to help rebuild my credit profile, but this is paid in full EACH MONTH and the balance is nominal in the grand scheme as the max I can borrow is £400.

My main aim is to clear this old debt by the time I'm 30 (sept 27) which I had been on course to clear quite easily, my work have put extra working restrictions on me and I can no longer work from home on Fridays (Despite the fact I travel 60 mile for essentially a half day) so had to adjust what I pay my debt plan to cover this.

My new plan was to save what I can towards paying the Paypal at the end of this year and get that settled in early 27, this could be easily done by just saving £50 a month.

Whilst in theory it sounds ok, I know how my brain works and I have struggled a lot to not just waste every penny I have and then sit and wallow in self-pity and harp on about past mistakes. This reason I has stopped me from saving money and really making any decent self progress.

I know all the strategies, I've cut regular costs where I can and don't' really afford myself much creature comforts and I'm always just an inch away from being able to make a good in-round with savings and at the last moment that incident we should be saving for happens. This then effects me mentality and I will go quite self-destructive or look for a quick way out.

I am very motivated at this moment, but I know I could slip any moment. The fact I cannot say today "I'll save something" and I have to wait for payday really demotivates me and again becomes a hindrance. 

Does anyone have any experience with these issues and managing your mind whilst in these scenarios?

I know I did better last year, but it's human nature to compare to others, so I just need to prove to myself I can do better this year.

Any questions I'm very welcome to answer and would love to here some ideas!

I totally get your feelings of frustration. The whole process takes forever.

What you must remember is that you have already come a long way and achieved a lot. You should be feeling good about that. 

So what else can you do? First thing I would do would be to take another look at your SOA. When did you last update this, are costs still accurate? Cost of living items (CT, utilities, food) have all increased above wage inflation. Can you increase these and so reduce the amount you are paying PayPlan monthly. This may allow you to build your settlement fund faster.

Next thing is to request CCAs as suggested. Absolutely no point in paying towards unenforceable debts.

Finally think about what your long term plan is. Do you want to pay every penny or do you want to negotiate discounts? What is your strategy for reaching that point?

Good luck with this and well done for getting this far.

Willrdouglas1809

tigergambit said:

Next thing is to request CCAs as suggested. Absolutely no point in paying towards unenforceable debts.

Thanks for the reply, I have been reviewing everything and just trying to summarise my debts and see how I've progressed since then (even if I had took on some smaller debts or credit accounts) and it has definitely lit a spark, just need to keep the fire alive now.

In terms of the CCA's, what will this mean if it's unenforceable? I'm guessing they won't leave me alone, but the default will still be held on my profile until it expires after 6 years

tigergambit

Willrdouglas1809 said:

tigergambit said:

Next thing is to request CCAs as suggested. Absolutely no point in paying towards unenforceable debts.

Thanks for the reply, I have been reviewing everything and just trying to summarise my debts and see how I've progressed since then (even if I had took on some smaller debts or credit accounts) and it has definitely lit a spark, just need to keep the fire alive now.

In terms of the CCA's, what will this mean if it's unenforceable? I'm guessing they won't leave me alone, but the default will still be held on my profile until it expires after 6 years

An unenforceable debt remains as a debt but the owner is unable to get a CCJ. You stop payments and it will become statutory barred after 6 years, but it will still show as a default until then.

You're a bit away from this happening.